
I have yet to hear...
Of a merger that created jobs.
The US Federal Communications Commission has thrown a major stumbling block in the way of AT&T's proposed $39bn acquisition of T-Mobile by taking the unusual step of requesting an administrative hearing on the merger. Such administrative hearings are rare, and as The Wall Street Journal points out, the last time such a step …
"Surprising no one, AT&T also used the "j-word" in its response to the FCC move. "It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both," AT&T's top mouthpiece Larry Solomon said in a statement."
Well I thought that I _was_ surprised, this paragraph notwithstanding, but it turns out I am simply astonished.
.
The story is told of Noah Webster. His wife caught him in a compromising position with the chambermaid. "Why Noah!" she cried, "I am surprised!" "No, my dear," said the great lexicographer, disentangling himself, "I am surprised. You are astonished."
"Surprising no one, AT&T also used the "j-word" in its response to the FCC move. "It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both," AT&T's top mouthpiece Larry Solomon said in a statement."
Except internal AT&T emails have actually stated just the opposite.. That they could instead slow down 4G network build out while at the same time rid US consumers of the bargain basement National Cellular Carrier.
Oh yes, the supposed AT&T jobs. They claimed it'd create "up to 96,000" jobs. But, first off, they were counting over 10 years, counting each job as a fresh job every year -- so the real claim was 9,600 10-year jobs. Secondly, they were using lots of bogus fudge factors, like assuming some new employees would then eat more McDonalds, so more people have to work at McDonalds, and so on, meaning how many *actual* jobs they even predicted is quite uncertain. Obviously, though, this is all fake, mergers result in a reduction in jobs.
AT&T's second claim was they need all this extra spectrum. Also false -- they have far more 850+1900 than Verizon Wireless (who has a similar amount of spectrum), they have a little less 700 than Verizon but a lot more AWS (1700/2100), and they have huge swaths of other spectrum.
The simple reality is, AT&T wants to buy T-Mobile to eliminate a GSM competitor that has better prices and especially better data plans (T-Mobile throttles when you hit your data limit, instead of charging cash overages.) (AT&T and T-Mobile are the full-price and budget national GSM carriers, and Verizon Wireless and Sprint are full-price and budget CDMA carriers here, and there might be local ones available -- where I live we also have US Cellular (CDMA semi-national carrier) and IWireless (GSM local carrier.))